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Top 5 Electrical Estimating Methods in 2022
Estimates bring in work. They’re a massively important part of any electrician’s business, but we’re all guilty of putting them off, pushing them back and finding other jobs to do.
It’s easy to see why. When we don’t know what a customer’s expecting, what the competition’s quoting, or whether we’re working it out right, we’re not exactly filled with confidence… so we drag our dreaded paperwork out. Even worse, when we get estimates done and the customer goes elsewhere, it’s easy to feel like we’ve wasted our time.
Everyone’s different, and what feels like common sense to one electrician might not to the next. That’s why we’re going to look at the Top 5 electrical estimating methods in 2022. We’ll break them down – you take your pick.
1. Time + materials
It’s a practical, reliable electrical estimating method based on how long a job’s going to take, plus the cost of materials. As well as helping you work out ballpark estimates, it gives you enough detail for full electrician’s quotes too (not 100% clear on the difference?
You’ll need a couple of things to get started with the time + materials approach. First, a clear idea of what your hourly rates are. Working out a realistic rate that covers your living and business costs gives you a solid starting point for more confident, consistent estimates and quotes. Second, you’ll need a quick way of costing up electrical materials. These days most suppliers have websites and some even have apps that speed the process up. Don’t forget to mark up your materials to cover your time sourcing them and getting them to the site.
2. Working to a budget
When it goes well, this electrical estimating method can be a real people pleaser. Your customer feels they’re in the driving seat, being listened to and accommodated – and they’re comfortable with what they’re spending.
From your point of view, as long as the budget they give you is realistic, you’ll know the price you’ve got to hit to get your estimate accepted. Less guesswork for you (but more for them).
Finally, there’s always the chance your customer totally overestimates and gives you a nice big budget, so you can put in a comfortable estimate with a guaranteed profit, and still make them happy by coming in for less. If there’s still a lot of budgets left when you’re finished, you could even bring the final price down – a powerful way to win trust and loyalty.
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3. Parametric Electrical Estimating
Parametric Electrical Estimating uses unit material cost / Labour hours with quantities on the number of units. Parametric Estimating is a more accurate estimating process. In order to be accurate, the measurement must be scalable.
For example: If we had to supply and install one metre of cable; material cost of $0.80 per metre plus labour 0.02 per hour per metre. Then 100 metres will be 100 times the combination of material cost plus labour hours. This is considered “Bottom-Up” estimating, which refers to determining the individual task estimates first, then rolling them up into an overall quote or tender cost estimate.
4. Per-Point Method
Pricing per-point wherein all involved fixtures like a switch, fan, sensors, etc. are classified as a particular point with an essential dollar value. The already classified specific points will be then added and multiplied for every point wherein the total number of fixtures/ points are being multiplied and tallied by a certain amount, which results as the project price. This particular pricing method is commonly considered as an easy and quick technique; however, it can thwart danger as it doesn’t take other different requirements for every project into outmost consideration. For project management, the best construction management software like Pro Crew Schedule, is proven to be very beneficial in every phase of the project. All features are designed to meet all the needs of both contractors and subcontractors.
An easy example will be outlined: If the electrical contractor estimates a project with an overall total of 80 points and the exact dollar value being chosen is $100 per point, the project’s estimation will be $8,000. The per-point method is a quick way of estimating and it will give an absolute satisfaction for estimators in terms of analytical insights. Considering the list of requirements specifically for individual projects, issues might arise. For some, this method is believed to be too general, which can result in unexpected delays and money runs out abruptly. Project managers focus on numerous different matters, including methods and techniques used for cost-estimation, project scheduling management implementation, crew management, etc.
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5. Design And Construct
A Design Brief is provided spelling out the parameters of what the Customer wants for the requirements for Electrical Construction. A design and construct project approach requires the team to be responsible for taking a concept that is developed with the owner, completing the detailed design, and then proceeding with the electrical construction. This is different than the conventional process, whereby contractors bid on a design that has been completed before their involvement. If they are successful contractors, they will execute the project. A Design and Construct estimation can utilize the Proven Labour Unit Method for accuracy, simplicity, and flexibility. Design and construct estimates are often confused with budgets, but they are not the same. Because most owners have fiscal restraints that affect their capital investment, they depend heavily on the estimator to develop accurate cost forecasts at every stage of the project.
